Silver Star Production at Joarcam 1327 Well Totals 1300 Barrels Oil for Full Month of April 1322 Well to Spud Today
May 11, 2005 -- Silver Star Energy, Inc. (OTCBB: SVSE) today announces the April 2005 oil production numbers for the "13-27" well at Joarcam, Alberta. Production for the full 30 days of the month of April totaled 1,300 barrels produced and shipped for sale with an average daily production rate of 43 barrels per day.
The Company is receiving top-dollar "West Edmonton Light" prices for its oil production. The somewhat lower daily rate is related to 3 days of higher than normal water cut that affected production. Production rates are expected to fluctuate until the well matures over time.
In other news, the "13-22" well was delayed two days due to weather and is to spud today. The Company expects to reach total depth of 1,020 metres (3,347 feet) and complete the well in 7 to 10 days. Currently, the 38 degree API light oil at Joarcam has been priced at over $62.00 CDN ($51.00 US) per barrel. The project is a low risk development property with oil at shallow depth, short payback period and long life reserves. The play is located in the "Viking C" pool adjacent to the established Joarcam Viking pool, the largest Viking hydrocarbon accumulation in Alberta, Canada.
The "13-22" well is the second well to be drilled by Silver Star under the Company's overall development strategy at Joarcam. This plan is to drill up to 10 wells during 2005. With success at Joarcam, it is anticipated that the field could produce 500 barrels of oil per day (bbls/d) if fully developed. Oil wells at Joarcam demonstrate very shallow decline curves. The prospect lands are located about 25 miles southeast of Edmonton, Alberta, and there is year round access to the property.
About Silver Star Energy, Inc.
The Company is committed to the exploration and extensive development of oil and natural gas reserves throughout western North America. Company management is focused on an acquisition program targeting high quality, low-risk prospects provided via key strategic alliance partnerships.
Safe harbor for Forward-Looking Statements:
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Silver Star Energy, Inc. has little or no control.
ON BEHALF OF THE BOARD
Silver Star Energy, Inc.
Robert McIntosh-President
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Silver Star Energy, Inc.
To find out more about Silver Star Energy, Inc. (OTCBB: SVSE), visit our website at www.silverstarenergy.com.
Source: Silver Star Energy, Inc.
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Silver Star Production at Joarcam 1327 Well Totals 1300 Barrels Oil for Full Month of April 1322 Well to Spud Today